Chapter 13 Bankruptcy Trustees In Chicago

Bankruptcy Trustees If you live in Chicago and file a chapter 13 bankruptcy, the trustee appointed to your case is either going to be Marilyn Marshall or Tom Vaughn. Although each trustee follows the same bankruptcy laws and processes, each has a different standard or structure when it comes to confirming cases. In general, cases are more likely to be confirmed if you have trustee Vaughn. This is because the trustee is a little more forgiving when it comes to making amendments. The trustee understands that the debtor and the debtor’s attorney are doing everything they can to get a case confirmed. The debtor wants to start repaying his creditors. The attorney wants to get the case confirmed + Read More

Converting Your Bankruptcy Case From Chapter 13 To Chapter 7

When It Makes Sense There are circumstances where it makes perfect sense to convert a chapter 13 to chapter 7. One of the reasons why someone would want to convert their bankruptcy case is due to an inability to make chapter 13 payments. This can happen when someone loses their job, gets a divorce, becomes ill or injured, or simply does not wish to retain the property that was being reorganized in a chapter 13. Let's look at an example of a homeowner who's trying desperately to save a home from being foreclosed upon. The homeowner files a chapter 13, begins to make monthly payments to the trustee and begins to make the regularly scheduled mortgage payment once again. Well at some point + Read More

Curing Your Mortgage Arrears With Chapter 13

The Best Way To Cure Mortgage Arrears There is only one way that you can cure or catch up on mortgage arrearages with the help of the bankruptcy system. That way involves the filing of a chapter 13 bankruptcy case. Chapter 13 bankruptcy is a unique way to save a home that's either in foreclosure, heading into foreclosure, or on the eve of a Sheriff sale. Filing a chapter 13 will allow you to make the regular mortgage payment directly to the lender as well as a separate payment known as a trustee payment which will cure your mortgage arrearage over a three to five-year period.  How It Works Here is how chapter 13 works. A petition under chapter 13 is filed with the clerk of the United + Read More

Three Tips For A Successful Chapter 13 Bankruptcy Case

 Chapter 13 Bankruptcy Case Tip 1 There are many tips that I can give you which will help you have a successful chapter 13 case or at least the most success possible under your circumstances. The biggest tip that I can give you however, is to go on payroll control for your chapter 13 trustee payments. Payroll control is where the amount required for your chapter 13 gets deducted directly out of your pay. This means that you do not have the ability to make the payment on your own. You are basically giving up a certain amount of control whereby your chapter 13 plan payment is taken directly out of your pay and transferred over to your chapter 13 trustee. Studies have found to an + Read More

When Chapter 13 Bankruptcy Works Really Well

When Chapter 13 Bankruptcy Is Used Chapter 13 is a reorganization under the United States Bankruptcy Code.  Chapter 13 allows you to repay debt over a three to five-year period.  It’s most commonly used to save a home that’s been in foreclosure or to save a vehicle that’s been repossessed or to stop collection activity on non-dischargeable debt such as parking tickets, child support, tollway violations, IRS debt and more.  Debtor Has Income To Fund Plan Chapter 13 bankruptcy works the best when someone has the income to pay where they didn’t have the income before.  For example, if someone was off of work due to an illness, and injury and all of a sudden got back to work and now has the + Read More

Chapter 13 Bankruptcy Attorney States “You Get More Than One Shot”

Filing chapter 13 bankruptcy is not a one-shot deal. You do have the ability to file another chapter 13 bankruptcy case should your first case fail states Chapter 13 bankruptcy attorney David Siegel. No one sets out to fail in bankruptcy. Debtor's and their counsel wish to file a perfect chapter 13 petition and to have the debtor make all of the required payments under their repayment plan. Unfortunately, life throws different obstacles into the mix. One could lose a job halfway through a bankruptcy case under chapter 13. One can become ill and miss some much needed hours at work. One could get a divorce and lose that dual income that they had at the start of the chapter 13 case. Interest + Read More

How does a Chapter 13 Bankruptcy effect a cosigner?

If you are a cosigner on the debt, then you and the other debtor are technically joint and severally liable for that debt.  One common form of debt that’s jointly owned is that for a vehicle.  If somebody else filed a Chapter 13 bankruptcy on it vehicle that you cosign, you may be protected under that persons Chapter 13 bankruptcy provided they pay the debt in full 100%.  If, on the other hand, they decide to pay less than 100%, then the creditor has the ability to bring a Motion to Modify the Stay and come after you, the non-filing co-debtor for the difference. What we usually see in these types of cases is the debtor filing a 100% Chapter 13 to protect that co-debtor.  But please keep + Read More

Bankruptcy – Motion to Extend the Automatic Stay

In a Chapter 13 bankruptcy case, upon filing, there is a creation of the Automatic Stay which protects the debtor against certain actions by creditors.  If the debtor is filing a bankruptcy case where a prior case was dismissed within the last year, then the Automatic Stay unless extended, will expire after 30 days.  This is a critical point because if a debtor files a Chapter 13 bankruptcy after a case has been dismissed within the last year, and the attorney does not bring a Motion to Extend the Automatic Stay, then the Stay will in fact be eliminated after 30 days from filing. What this means to a debtor is that a secured creditor, in many cases a vehicle or a mortgage company, can + Read More

Automatic Stay Imposed In Bankruptcy Case

If you are filing a Chapter 13 bankruptcy case in Chicago and in the prior year you have had two or more cases dismissed, then you are going to want to impose the Automatic Stay in your current filing.  By the fact that you have had two or more bankruptcy cases dismissed within a calendar year, you are basically telling the world that you do not have the ability to reorganize under Chapter 13 successfully.  For this reason, when the law was changed, the Congress stated that upon a third filing where to prior cases were dismissed within the prior year, there is no Stay in effect at the time of filing.  This means that a sheriff’s sale can continue, a repossession can continue, any type of + Read More

A Chapter 13 Bankruptcy Takes Discipline

The filing of a Chapter 13 bankruptcy case is a process that takes discipline, attention to detail and a strong effort to succeed.  Chapter 13 involves repaying either all or a portion of your debt over a three to five-year period.  We are talking about a long repayment plan; 36 to 60 months of consistent payments not only to the trustee which takes care of your arrearages, your secured debt enter other miscellaneous debt, but you also need to make regular payments to your utilities, your mortgage company going forward, and your food and your clothing and all the other things that can happen in life that require money.  You have to make sure that you budget properly once your Chapter 13 + Read More